LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323-R01- HB.docx 1 of 10 General Assembly Substitute Bill No. 7323 January Session, 2019 AN ACT CONCERNING AN EXEMPTION FOR CERTAI N EXPENDITURES CLEARLY IDENTIFYING GOVERNOR OR PRESIDENT OF THE UNITED STATES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (b) of section 9-601a of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective from 2 passage): 3 (b) As used in this chapter and chapter 157, "contribution" does not 4 mean: 5 (1) A loan of money made in the ordinary course of business by a 6 national or state bank; 7 (2) Any communication made by a corporation, organization or 8 association solely to its members, owners, stockholders, executive or 9 administrative personnel, or their families; 10 (3) Nonpartisan voter registration and get-out-the-vote campaigns 11 by any corporation, organization or association aimed at its members, 12 owners, stockholders, executive or administrative personnel, or their 13 families; 14 (4) Uncompensated services provided by individuals volunteering 15 their time on behalf of a party committee, political committee, slate 16 committee or candidate committee, including any services provided 17 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 2 of 10 for the benefit of nonparticipating and participating candidates under 18 the Citizens' Election Program and any unreimbursed travel expenses 19 made by an individual who volunteers the individual's personal 20 services to any such committee. For purposes of this subdivision, an 21 individual is a volunteer if such individual is not receiving 22 compensation for such services regardless of whether such individual 23 received compensation in the past or may receive compensation for 24 similar services that may be performed in the future; 25 (5) The use of real or personal property, a portion or all of the cost of 26 invitations and the cost of food or beverages, voluntarily provided by 27 an individual to a candidate, including a nonparticipating or 28 participating candidate under the Citizens' Election Program, or to a 29 party, political or slate committee, in rendering voluntary personal 30 services at the individual's residential premises or a community room 31 in the individual's residence facility, to the extent that the cumulative 32 value of the invitations, food or beverages provided by an individual 33 on behalf of any candidate or committee does not exceed four hundred 34 dollars with respect to any single event or does not exceed eight 35 hundred dollars for any such event hosted by two or more individuals, 36 provided at least one such individual owns or resides at the residential 37 premises, and further provided the cumulative value of the invitations, 38 food or beverages provided by an individual on behalf of any such 39 candidate or committee does not exceed eight hundred dollars with 40 respect to a calendar year or single election, as the case may be; 41 (6) The sale of food or beverage for use by a party, political, slate or 42 candidate committee, including those for a participating or 43 nonparticipating candidate, at a discount, if the charge is not less than 44 the cost to the vendor, to the extent that the cumulative value of the 45 discount given to or on behalf of any single candidate committee does 46 not exceed four hundred dollars with respect to any single primary or 47 election, or to or on behalf of any party, political or slate committee, 48 does not exceed six hundred dollars in a calendar year; 49 (7) The display of a lawn sign by a human being or on real property; 50 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 3 of 10 (8) The payment, by a party committee or slate committee of the 51 costs of preparation, display, mailing or other distribution incurred by 52 the committee or individual with respect to any printed slate card, 53 sample ballot or other printed list containing the names of three or 54 more candidates; 55 (9) The donation of any item of personal property by an individual 56 to a committee for a fund-raising affair, including a tag sale or auction, 57 or the purchase by an individual of any such item at such an affair, to 58 the extent that the cumulative value donated or purchased does not 59 exceed one hundred dollars; 60 (10) (A) The purchase of advertising space which clearly identifies 61 the purchaser, in a program for a fund-raising affair sponsored by the 62 candidate committee of a candidate for an office of a municipality, 63 provided the cumulative purchase of such space does not exceed two 64 hundred fifty dollars from any single such candidate or the candidate's 65 committee with respect to any single election campaign if the 66 purchaser is a business entity or fifty dollars for purchases by any 67 other person; 68 (B) The purchase of advertising space which clearly identifies the 69 purchaser, in a program for a fund-raising affair or on signs at a fund-70 raising affair sponsored by a party committee or a political committee, 71 other than an exploratory committee, provided the cumulative 72 purchase of such space does not exceed two hundred fifty dollars from 73 any single party committee or a political committee, other than an 74 exploratory committee, in any calendar year if the purchaser is a 75 business entity or fifty dollars for purchases by any other person. 76 Notwithstanding the provisions of this subparagraph, the following 77 may not purchase advertising space in a program for a fund-raising 78 affair or on signs at a fund-raising affair sponsored by a party 79 committee or a political committee, other than an exploratory 80 committee: (i) A communicator lobbyist, (ii) a member of the 81 immediate family of a communicator lobbyist, (iii) a state contractor, 82 (iv) a prospective state contractor, or (v) a principal of a state 83 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 4 of 10 contractor or prospective state contractor. As used in this 84 subparagraph, "state contractor", "prospective state contractor" and 85 "principal of a state contractor or prospective state contractor" have the 86 same meanings as provided in subsection (f) of section 9-612; 87 (11) The payment of money by a candidate to the candidate's 88 candidate committee, provided the committee is for a nonparticipating 89 candidate; 90 (12) The donation of goods or services by a business entity to a 91 committee for a fund-raising affair, including a tag sale or auction, to 92 the extent that the cumulative value donated does not exceed two 93 hundred dollars; 94 (13) The advance of a security deposit by an individual to a 95 telephone company, as defined in section 16-1, for telecommunications 96 service for a committee or to another utility company, such as an 97 electric distribution company, provided the security deposit is 98 refunded to the individual; 99 (14) The provision of facilities, equipment, technical and managerial 100 support, and broadcast time by a community antenna television 101 company, as defined in section 16-1, for community access 102 programming pursuant to section 16-331a, unless (A) the major 103 purpose of providing such facilities, equipment, support and time is to 104 influence the nomination or election of a candidate, or (B) such 105 facilities, equipment, support and time are provided on behalf of a 106 political party; 107 (15) The sale of food or beverage by a town committee to an 108 individual at a town fair, county fair, local festival or similar mass 109 gathering held within the state, to the extent that the cumulative 110 payment made by any one individual for such items does not exceed 111 fifty dollars; 112 (16) An organization expenditure by a party committee, legislative 113 caucus committee or legislative leadership committee; 114 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 5 of 10 (17) The donation of food or beverage by an individual for 115 consumption at a slate, candidate, political committee or party 116 committee meeting, event or activity that is not a fund-raising affair to 117 the extent that the cumulative value of the food or beverages donated 118 by an individual for a single meeting or event does not exceed fifty 119 dollars; 120 (18) The value associated with the de minimis activity on behalf of a 121 party committee, political committee, slate committee or candidate 122 committee, including for activities including, but not limited to, (A) the 123 creation of electronic or written communications or digital photos or 124 video as part of an electronic file created on a voluntary basis without 125 compensation, including, but not limited to, the creation and ongoing 126 content development and delivery of social media on the Internet or 127 telephone, including, but not limited to, the sending or receiving of 128 electronic mail or messages, (B) the posting or display of a candidate's 129 name or group of candidates' names at a town fair, county fair, local 130 festival or similar mass gathering by a party committee, (C) the use of 131 personal property or a service that is customarily attendant to the 132 occupancy of a residential dwelling, or the donation of an item or 133 items of personal property that are customarily used for campaign 134 purposes, by an individual, to a candidate committee, provided the 135 cumulative fair market value of such use of personal property or 136 service or items of personal property does not exceed one hundred 137 dollars in the aggregate for any single election or calendar year, as the 138 case may be; 139 (19) The use of offices, telephones, computers and similar 140 equipment provided by a party committee, legislative caucus 141 committee or legislative leadership committee that serve as 142 headquarters for or are used by such party committee, legislative 143 caucus committee or legislative leadership committee; 144 (20) A communication, as described in subdivision (7) of subsection 145 (b) of section 9-601b; 146 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 6 of 10 (21) An independent expenditure, as defined in section 9-601c; 147 (22) A communication containing an endorsement on behalf of a 148 candidate for nomination or election to the office of Governor, 149 Lieutenant Governor, Secretary of the State, State Treasurer, State 150 Comptroller, Attorney General, state senator or state representative, 151 from a candidate for the office of Governor, Lieutenant Governor, 152 Secretary of the State, State Treasurer, State Comptroller, Attorney 153 General, state senator or state representative, provided the candidate 154 (A) making the endorsement is unopposed at the time of the 155 communication, and (B) being endorsed paid for such communication; 156 (23) A communication that is sent by mail to addresses in the district 157 for which a candidate being endorsed by another candidate pursuant 158 to this subdivision is seeking nomination or election to the office of 159 state senator or state representative, containing an endorsement on 160 behalf of such candidate for such nomination or election from a 161 candidate for the office of state senator or state representative, 162 provided the candidate (A) making the endorsement is not seeking 163 election to the office of state senator or state representative for a 164 district that contains any geographical area shared by the district for 165 the office to which the endorsed candidate is seeking nomination or 166 election, and (B) being endorsed paid for such communication; [or] 167 (24) A communication described in subdivision (2) of subsection (a) 168 of section 9-601b, as amended by this act, that refers to a clearly 169 identified candidate for Governor or President of the United States, 170 which communication is paid for by a candidate for nomination or 171 election to any other office or by any committee of such candidate, 172 provided such communication shall only not be a contribution to any 173 candidate for Governor or President of the United States; or 174 [(24)] (25) Campaign training events provided to multiple 175 individuals by a legislative caucus committee and any associated 176 materials, provided the cumulative value of such events and materials 177 does not exceed six thousand dollars in the aggregate for a calendar 178 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 7 of 10 year. 179 Sec. 2. Subsection (b) of section 9-601b of the general statutes is 180 repealed and the following is substituted in lieu thereof (Effective from 181 passage): 182 (b) The term "expenditure" does not mean: 183 (1) A loan of money, made in the ordinary course of business, by a 184 state or national bank; 185 (2) A communication made by any corporation, organization or 186 association solely to its members, owners, stockholders, executive or 187 administrative personnel, or their families; 188 (3) Nonpartisan voter registration and get-out-the-vote campaigns 189 by any corporation, organization or association aimed at its members, 190 owners, stockholders, executive or administrative personnel, or their 191 families; 192 (4) Uncompensated services provided by individuals volunteering 193 their time on behalf of a party committee, political committee, slate 194 committee or candidate committee, including any services provided 195 for the benefit of nonparticipating and participating candidates under 196 the Citizens' Election Program and any unreimbursed travel expenses 197 made by an individual who volunteers the individual's personal 198 services to any such committee. For purposes of this subdivision, an 199 individual is a volunteer if such individual is not receiving 200 compensation for such services regardless of whether such individual 201 received compensation in the past or may receive compensation for 202 similar services that may be performed in the future; 203 (5) Any news story, commentary or editorial distributed through 204 the facilities of any broadcasting station, newspaper, magazine or 205 other periodical, unless such facilities are owned or controlled by any 206 political party, committee or candidate; 207 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 8 of 10 (6) The use of real or personal property, a portion or all of the cost of 208 invitations and the cost of food or beverages, voluntarily provided by 209 an individual to a candidate, including a nonparticipating or 210 participating candidate under the Citizens' Election Program, or to a 211 party, political or slate committee, in rendering voluntary personal 212 services at the individual's residential premises or a community room 213 in the individual's residence facility, to the extent that the cumulative 214 value of the invitations, food or beverages provided by an individual 215 on behalf of any candidate or committee does not exceed four hundred 216 dollars with respect to any single event or does not exceed eight 217 hundred dollars for any such event hosted by two or more individuals, 218 provided at least one such individual owns or resides at the residential 219 premises, and further provided the cumulative value of the invitations, 220 food or beverages provided by an individual on behalf of any such 221 candidate or committee does not exceed eight hundred dollars with 222 respect to a calendar year or single election, as the case may be; 223 (7) A communication described in subdivision (2) of subsection (a) 224 of this section that includes speech or expression made (A) prior to the 225 ninety-day period preceding the date of a primary or an election at 226 which the clearly identified candidate or candidates are seeking 227 nomination to public office or position, that is made for the purpose of 228 influencing any legislative or administrative action, as defined in 229 section 1-91, or executive action, or (B) during a legislative session for 230 the purpose of influencing legislative action; 231 (8) An organization expenditure by a party committee, legislative 232 caucus committee or legislative leadership committee; 233 (9) A commercial advertisement that refers to an owner, director or 234 officer of a business entity who is also a candidate and that had 235 previously been broadcast or appeared when the owner, director or 236 officer was not a candidate; 237 (10) (A) A communication containing an endorsement on behalf of a 238 candidate for nomination or election to the office of Governor, 239 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 9 of 10 Lieutenant Governor, Secretary of the State, State Treasurer, State 240 Comptroller, Attorney General, state senator or state representative, 241 from a candidate for the office of Governor, Lieutenant Governor, 242 Secretary of the State, State Treasurer, State Comptroller, Attorney 243 General, state senator or state representative, [shall not be an 244 expenditure attributable to the endorsing candidate, if] provided (i) the 245 candidate making the endorsement is unopposed at the time of the 246 communication, and (ii) the communication is paid for by the 247 candidate or the committee of the candidate being endorsed. 248 (B) Notwithstanding the provisions of subparagraph (A) of this 249 subdivision, a communication described in said subparagraph shall be 250 an expenditure on behalf of the candidate or committee paying for the 251 communication; 252 (11) (A) A communication that is sent by mail to addresses in the 253 district for which a candidate being endorsed by another candidate 254 pursuant to the provisions of this subdivision is seeking nomination or 255 election to the office of state senator or state representative, containing 256 an endorsement on behalf of such candidate for such nomination or 257 election, from a candidate for the office of state senator or state 258 representative, [shall not be an expenditure attributable to the 259 endorsing candidate, if] provided (i) the candidate making the 260 endorsement is not seeking election to the office of state senator or 261 state representative for a district that contains any geographical area 262 shared by the district for the office to which the endorsed candidate is 263 seeking nomination or election, and (ii) the communication is paid for 264 by the candidate or the committee of the candidate being endorsed. 265 (B) Notwithstanding the provisions of subparagraph (A) of this 266 subdivision, a communication described in said subparagraph shall be 267 an expenditure on behalf of the candidate or committee paying for the 268 communication; 269 (12) A communication described in subdivision (2) of subsection (a) 270 of this section that refers to a clearly identified candidate for Governor 271 Substitute Bill No. 7323 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07323- R01-HB.docx } 10 of 10 or President of the United States, which communication is paid for by 272 a candidate for nomination or election to any other office or by any 273 committee of such candidate, provided such communication shall only 274 not be an expenditure to the extent it refers to any candidate for 275 Governor or President of the United States; 276 [(12)] (13) Campaign training events provided to multiple 277 individuals by a legislative caucus committee and any associated 278 materials, provided the cumulative value of such events and materials 279 does not exceed six thousand dollars in the aggregate for a calendar 280 year; 281 [(13)] (14) A lawful communication by any charitable organization 282 which is a tax-exempt organization under Section 501(c)(3) of the 283 Internal Revenue Code of 1986, or any subsequent corresponding 284 internal revenue code of the United States, as from time to time 285 amended; 286 [(14)] (15) The use of offices, telephones, computers and similar 287 equipment provided by a party committee, legislative caucus 288 committee or legislative leadership committee that serve as 289 headquarters for or are used by such party committee, legislative 290 caucus committee or legislative leadership committee; or 291 [(15)] (16) An expense or expenses incurred by a human being 292 acting alone in an amount that is two hundred dollars or less, in the 293 aggregate, that benefits a candidate for a single election. 294 This act shall take effect as follows and shall amend the following sections: Section 1 from passage 9-601a(b) Sec. 2 from passage 9-601b(b) GAE Joint Favorable Subst.